Trading Update: Friday November 21, 2025
S&P E-mini market analysis
E-mini daily chart
- The E-mini formed a large outside down bar closing on its low yesterday. While yesterday was good for the bears, it’s a relatively large and climactic bar. This increases the probability that today will have poor follow-through for the Bears and likely close above the day’s open.
- The market is at the moving average on the weekly chart, which is a support level. This increases the probability that the odds favor a bounce over the next couple of days.
- Because yesterday was a surprise, the bulls will likely need to make the market go sideways for several days before they will be able to form a credible bottom.
- Less likely, the market will form a strong reversal to the upside without the bearish first getting a second leg down after yesterday’s outside down bar.
- Ultimately, the daily chart is probably going to go sideways and continue the trading range price action.
- The bulls still have the magnet of 7,000, and the market will probably try to reach it over the next several weeks to months.
- Overall, yesterday’s outside down bar is climactic enough that the odds favor a bounce. Traders will pay attention to see what the reversal from yesterday’s low looks like. The Bulls want to trap the Bears and form a strong reversal. This would increase the probability of the Bears buying back their shorts in the market, leading to an upside breakout.
- If the reversal up is not strong, traders will expect sellers above and a second leg down below yesterday’s low.
E-mini 5-minute chart and what to expect today
- Today formed a gap up and went sideways to down, testing below yesterday’s low. Because yesterday was such a climactic day for the bears, and the market was forming strong buying pressure from yesterday’s bar 45 to the end of the day, there was increased risk that today would form a trading range.
- Bars 23 and 24 are strong enough for the market to be always in long, and for traders to expect a second leg up in a test of yesterday’s 66 high yesterday’s 66 high is important because that is the most recent major lower high on the 5-minute chart.
- So far, as of Bar 24, the market has shown enough buying pressure that the odds favor a bull trend or a trading range, and not a bear trend day.
- The Bulls want to get above the bar at 66 high from yesterday to end the argument that the market is still in a bear channel.
- Today is Friday, which means the weekly chart support and resistance is important. Currently, the market is at the weekly chart moving average, a support level. The Bulls are hopeful that the weekly chart will show a tail below the bar, increasing the probability of a bounce next week.
- Traders should be mindful of the possibility of a surprise breakout late in the day, as traders decide on the close of the weekly chart.
Yesterday’s E-mini setups
Richard created the SP500 E-mini chart. (Note: EMA interval incorrectly set at 14.)
Here are reasonable stop entry setups from yesterday. I show each buy entry bar with a green arrow and each sell entry bar with a red arrow. Buyers of both the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a near 4-year library of more detailed explanations of swing trade setups (see Online Course/BTC Daily Setups). Encyclopedia members get current daily charts added to Encyclopedia.
My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not currently in the market, these entries would be logical times for him to enter. These therefore are swing entries.
It is important to understand that most swing setups do not lead to swing trades. As soon as traders are disappointed, many exit. Those who exit prefer to get out with a small profit (scalp), but often have to exit with a small loss.
If the risk is too big for your account, you should wait for trades with less risk or trade an alternative market like the Micro E-mini.
Summary of today’s S&P E-mini price action
Richard created the SP500 E-mini chart. (Note: EMA interval incorrectly set at 14.)
E-mini end of day video review
Periodic end of day review videos will be moved to top of page when done.
See the weekly update for a discussion of the price action on the weekly chart and for what to expect going into next week.
Trading Room
Al Brooks and other presenters talk about the detailed E-mini price action real-time each day in the Brooks Trading Course trading room. We offer a 2 day free trial.
Charts use Pacific Time
When times are mentioned, it is USA Pacific Time. The E-mini day session charts begin at 6:30 am PT and end at 1:15 pm PT which is 15 minutes after the NYSE closes. You can read background information on the market reports on the Market Update page.
